RBI has made it a rule that advances to SEZs are to be made easier and thus be out of the purview of Commercial real estate loans because referring them as commercial realty segment found it hard to mobilize funds. The Realty segment loans are said to be dangerous and due to its contact with markets and commodities. Sources from www.propertykhazana.com state that there is a restraint on flow of funds from investors abroad.

A report from Export Promotion Council for EOUs and SEZs recommended the union Finance Minister and wanted that the SEZs be considered equivalent to infrastructure. The Minister further added that execution, commissioning, and organizing SEZs and buying units may be a fraction of lending which may facilitate the banks and other institutions for making availability of funds on the rules envisaged for infrastructure lending.

A source from www.propertykhazana.com states RBI wants to give a clear picture on realty segment loan where the loans are used to purchase land and their reimbursement is made from the sale of the property. As such is making a classification on CRE exposures and those which dies not come under its purview. But then when it comes to SEZs, preparations are taken to infuse the let off rentals from being unstable and this undertaken by going in for long term contracts. For further details visit www.propertykhazana.com.